\u3000\u3 China Vanke Co.Ltd(000002) 142 Bank Of Ningbo Co.Ltd(002142) )
Both revenue and net profit increased rapidly. In 2021, the operating revenue reached 52.8 billion yuan, a year-on-year increase of 28.4%, which was basically the same as that in the first three quarters; The annual PPOP increased by 30.6% year-on-year; The annual net profit attributable to the parent company was 19.5 billion yuan, a year-on-year increase of 29.9%. The annual net profit attributable to the parent company increased by an average of 19.4% in two years, up 3.8 percentage points from the first three quarters The annual revenue and net profit have maintained high growth and outstanding performance. 2021 weighted roe16 6%, up 1.7 percentage points year-on-year.
The asset growth rate was significantly higher than the industry average, and the market share continued to increase. In 2021, the total assets increased by 23.9% year-on-year to 2.02 trillion yuan, which was basically the same as that in the previous period, significantly higher than the overall level of the industry. Among them, the number of outlets increased by about 10% to 463 in 2021, and the market share continued to increase. Among them, deposits increased by 13.8% year-on-year to 1.06 trillion yuan, and loans increased by 25.4% year-on-year to 0.86 trillion yuan; At the end of the year, the core tier 1 capital adequacy ratio was 10.16%, which was higher than the regulatory standard. Under the condition of high roe and sufficient capital, the asset expansion capacity was sufficient.
The daily average net interest margin decreased slightly, and the investment income of fvpl increased significantly. The annual average daily net interest margin disclosed by the company was 2.21%, a year-on-year decrease of 9bps, mainly due to the decline of loan yield in line with the market. However, the company has a large number of assets invested in fvpl. Under the condition of downward interest rate, this part of revenue increased significantly by 33% year-on-year, making a great contribution to revenue growth.
The financial management business promoted a substantial increase in the net income of handling charges. In 2021, the net fee income increased by 30.3% year-on-year, with an incremental scale of 1.9 billion yuan. Among them, the income from off balance sheet financial management business increased by 1.3 billion yuan, which is the main reason for the increase of handling fees. In addition, the wealth management business still maintained a good growth, with AUM increasing by 23% year-on-year to 656.2 billion yuan at the end of the year.
Asset quality remains excellent. The estimated annual NPL generation rate was basically flat at 0.52% year-on-year, and the asset quality was still excellent. The non-performing rate of the company decreased slightly to 0.77%, and the attention rate increased slightly by 10bps to 0.48% compared with the third quarter. Because the index itself is very low, it is normal to fluctuate; The “credit cost rate / non-performing generation rate” is as high as 238%, the provision is still significantly over withdrawn, and the provision coverage at the end of the period is as high as 526%, an increase of 20 percentage points over the beginning of the year. The safety cushion is thick, and there is still a lot of room to feed back profits.
Investment suggestion: we slightly adjust the profit forecast according to the latest data. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 23.6/285/34.2 billion yuan, with a year-on-year growth rate of 20.9/20.5/20.0%; Diluted EPS is 3.46/4.20/5.06 yuan; The current share price corresponds to PE of 11.2/9.2/7.7x and Pb of 1.66/1.44/1.24x. The growth of the company ranks in the forefront of listed banks, and its fundamentals are based on leading peers, maintaining a “buy” rating.
Risk tip: the weakening macroeconomic situation may have an adverse impact on the quality of bank assets.
